US States get $5 Billion Funding for Interstate EV Charging

Up until now, the US has been lagging many other developed countries when it comes to EV adoption. In 2021 it was estimated that only 4% of US vehicles are plug-in EVs, while that number is 19% in Europe. While other countries are committed to phase out the sale of internal combustion engined (ICE) vehicles over the next decade or so, only California and Massachusetts in the US have set a solid target of 2035 for the end of ICE sales. In comparison, Norway is the most ambitious country in Europe with a phase out date of 2025. The majority of other European countries have targetted 2030 for the end of ICE sales. It could be that part of the problem is that EU countries are smaller, with more compact road networks, which makes dealing with infrastructure easier. However, the US Administration has now moved to approve Electric Vehicle Infrastructure Deployment Plans for all 50 States, the District of Columbia and Puerto Rico, which hopefully will make the infrastructure situation much better.

The approval comes under the National Electric Vehicle Infrastructure (NEVI) Formula Program, that was established and funded by President Biden’s Bipartisan Infrastructure Law. The program allows all states to access funding of over $1.5 billion from the FY22 and FY23 NEVI formula funding to help build EV chargers for around 75,000 miles of highway. The NEVI formula funding will make $5 billion available over five years.

“America led the original automotive revolution in the last century, and today, thanks to the historic resources in the President’s Bipartisan Infrastructure Law, we’re poised to lead in the 21st century with electric vehicles,” said U.S. Transportation Secretary Pete Buttigieg. “We have approved plans for all 50 States, Puerto Rico and the District of Columbia to help ensure that Americans in every part of the country – from the largest cities to the most rural communities—can be positioned to unlock the savings and benefits of electric vehicles.”

State Departments of Transportation (DOTs) can also gain access to technical assistance through the Joint Office of Energy and Transportation, as well as beginning activities directly related to the development of their plans prior to approval. With the EV charging plans from all 50 States, the District of Columbia and Puerto Rico being approved, each can be reimbursed for those costs and now have a range of options to use their NEVI Formula funding for projects directly related to the charging of a vehicles.

Ten percent of the NEVI Formula Program will be set aside each year for the Secretary of Transportation to help fill gaps in the national network through discretionary grants. The $2.5 billion Discretionary Grant Program for Charging and Fueling Infrastructure will ensure charger deployment meets the Biden-Harris Administration’s priorities, including equity commitments to increase EV charging access in rural, underserved, and overburdened communities.